ARC Manufacturing will be turning to NCB Financial Group (NCBFG), its financial partner, for help to raise capital for a slate of new projects that it will embark on in the near future.

Executive chairman of ARC Manufacturing Norman Horne made the disclosure following a tour of the company’s approximately 20-acre property, where he guided a team from NCBFG led by Chairman Michael Lee-Chin.

“So, we do have three big projects on the drawing board that we’re working on. Massive projects! And we’re very excited about these projects. There are some discussions with Government, discussions with the bank, discussions with private equity,” he outlined.

While the ARC executive chairman did not provide specific details about the projects, he indicated that the ultimate goal was to create new products and possibly a new industry that will meet local demand while supplying to export customers.

“We have always focused on fungibility of raw material where we acquire a base raw material and we make multiple products from that raw material. So, that’s been a big part of our focus,” Horne told the Jamaica Observer.

“But there are some industries that Jamaica is not structurally organised to compete and there’s some industries where Jamaica can compete. So, we intend to bring an industry to Jamaica that will not only be able to satisfy the domestic market, but the greater part of it will be for export – and we’re targeting the United States,” he continued.

At present, ARC Manufacturing treats and cuts imported lumber for distribution to hardware outlets across Jamaica, as well produces nails, corrugated steel, zinc roofing, beams, and wire fencing. The company also sells wheelbarrows, dry wall and distributes cement for local producer Caribbean Cement Company.

Since 2007, ARC has enjoyed a borrowing relationship with National Commercial Bank of Jamaica (NCBJ), which has extended to a number of the financial institution’s sister companies offering solutions such as insurance, pensions, and trade financing.

That relationship has redounded to the expansion of ARC Manufacturing’s operation in the Bell Road and Spanish Town Road areas of St Andrew.

“NCB has been at the forefront of providing financing for ARC Manufacturing,” Horne said, describing ARC’s relationship with NCBFG as synergistic and comparing it to a “marriage”.

He noted, though, that his company has retired all of its debt financing arrangements with the financial group and is now benefiting from trade financing — factoring and reverse factoring — facilities.

When asked what type of financing ARC will need from NCBFG for its upcoming projects, Horne pointed out that a combination of solutions was being considered.

“I think that for this project, we’ll be looking to raise in private equity capital. So, it will be private equity in part, and some debt financing on the other hand. So, it will be a combination of both and corporate capital. So, there will be equity, debt financing, and also some level of private equity participation,” he revealed to the Caribbean Business Report.

ARC will be acquiring new real estate for expansion of the business that will come from the new projects. In fact, Horne shared that the company is now engaged in contract negotiations to acquire the seven-acre property that is based in the Corporate Area.

“We are in design phase of the plant, so that’s the second stage, and the third phase is that we are also in final negotiation for the acquisition of the machinery and equipment. So we’re ahead in this project,” the businessman said, adding that the end game of the project is to make Jamaica more competitive.

The company had previously informed the Caribbean Business Report, back in 2020, that it had plans to develop a property at Ferry Pen in St Andrew to improve the country’s competitiveness.

The executive chairman noted, however, that while the company has expanded into construction and property development, ARC will be more focused on its manufacturing business segment.

“For us, manufacturing requires some level of access to port, and so we want to be near port in these manufacturing processes, primarily because our interest is not 100 per cent domestic market. It’s more like satisfying domestic market, which we will be able to in terms of capacity and export [to the US and Caricom], to become net exporter of what we intend to develop,” he explained.

Published by The Jamaica Observer.

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ARC Manufacturing Ltd spared no expense in feting customers and distinguished guests with a swanky affair on Friday, October 13. The company, which has been a Design Week collaborator since its inception, hosted the penultimate event of the Design Week Ja 2023 series in fine form, treating guests to an afternoon of decadent catering, cocktails and mellow vibes. 

It was the perfect end to a steamy week and a groovy start to the weekend. The event started with cocktails and conversation, inviting guests to network and relax before the start of the programme. CPJ provided a well-stocked bar, and DJ Chin Movements, an events production outfit, filled the spacious venue with all the right grooves.

The warehouse at 14 Bell Road, where the event took place, is relatively new and part of ARC Manufacturing’s move to modernise and expand its retail space.

Novlet Green, general manager of corporate affairs and governance at ARC Manufacturing, delivered the welcome ahead of blessings and prayer from Reverend Dr Stevenson Samuels. The company’s Executive Chairman Norman Horne was up next to deliver the main address.

In his speech, Horne told the story of how the company’s venture into the business-to-consumer retail space was at the behest of then Prime Minister Portia Simpson Miller, who was adamant that the company should not only be serving other businesses but her constituents as well. However, this is not the only way the company aims to serve its community.

According to Horne, “Employees are concerned about inflation. Prices are rising, and the major complaint is that salaries are not rising in tandem with prices. We adopted a philosophy here that we want to pay a fair wage for a fair day’s work, and so far, we have continued this practice, which has resulted in one of the highest blue-collar and white-collar employee salary packages in this industry.”

Horne, who has led the company for its 27 years of operation, went on to declare that ARC Manufacturing was fully invested in Jamaica. He also shared the company’s current expansion plan as well as his vision for the company and its role in the Jamaican manufacturing and distribution industry.

“Currently, we have the only treatment plant in Jamaica. For some time, we were the only nail manufacturer on the island. We have been the first in a lot of areas, so we are hoping to become the leaders in bringing other sectors to Jamaica, and we welcome other companies to join in,” he noted, adding that the competition would be good for the country, as well.

ARC Manufacturing is one of the leading manufacturers and distributors of premium-quality building materials in Jamaica. The company has also begun to expand its offerings and hopes to continue on this trend.

“For us, Design Week is an opportunity to share with the public how a company like ours — that is in the manufacturing side of things — interfaces with design in Jamaica. Most people will hear design and think fashion, and so on, but, for us, it goes beyond that. We do offer some products in the interior design space, and we’re looking to expand our product offering in that space, as well,” Horne said.

Apart from extending its product offering, Horne also revealed plans to open the new retail space on 14 Bell Road to interior designers and related businesses for a shared commercial experience.

After Design Week’s own Novia McDonald-Whyte gave her address on design conversations, patrons engaged in some light fun and games, with two winners walking away with goodies courtesy of ARC Manufacturing.

Closing statements were given by Neville Alexander, deputy general manager of manufacturing and property maintenance, and then, ending on a very high note, the company signed out with the Silver Birds Steel Orchestra. The performance was so good that one ARC Manufacturing employee couldn’t help but deliver an impromptu and admittedly well-executed dance performance.

The event presented the perfect setting for the company to engage with customers and provide a platform for networking. The catering experience, care of Mastered Meals by Whitley, juiced the palate for conversation, with everything from a colourful fruit and cheese display, a vegan option in the form of a spring roll served with pineapple mint chutney, and a dessert station offering strawberry panna cotta and double chocolate fudge gateau. The pasta station and the BBQ chicken satay were crowd favourites.

For the patrons, however, it was all about supporting ARC Manufacturing. One such patron, Mark Tucker of Northcoast Hardware and Supercentre, had nothing but high praises.

“The event was very informative. Design Week is something we need. I’m always here because I’m a big supporter of ARC Manufacturing. They feel like family. The customer service is great, and the prices don’t hurt, either. We started in 2008, and we’ve been growing with ARC over the years,” Tucker shared.

With all the excitement witnessed so far and, equally important, the dialogue and debate, Design Week Ja 2023 can proudly claim another successful season.

Published by The Jamaica Observer.

ARC Manufacturing is lobbying the Government to curb the influx of construction items being imported.

Speaking recently during Jamaica Observer’s Design Week, senior managers at the company lamented that the local market is saturated with cheap imports taking away a huge share of the business.

General manager for sales and marketing Devon Brooks told the Jamaica Observer that the situation has progressively worsened and poses serious threats to construction workers in the island.

“We’re apart of Caricom and as a member state there are certain benefits that should obtain being in a single market. We realise that there’s dumping of certain items in our industry and market, nails are one of them. We have importation of Chinese and Dominican Republic nails on the market and the truth is when you look at quality of the product, it’s night and day,” Brooks argued.

He said “nails are very light items but you can feel the difference when you lift them up. When you hit one of our nails the likelihood of it bending is near impossible, when you use one of the imported nails— and workmen are using it — the nails are flying all over the place. We’ve seen reports of persons being injured because we have those inferior products coming on the market and it’s selling because of the price points.”

He explained that in most cases the importers are able to sell at a third of the price which makes it hard for his company to compete, although he maintains that ARC sells high quality products at affordable prices.

In fact, investigations conducted by the Business Observer revealed that some imported construction items are more expensive compared with ARC prices.

For example, a pound of 4-inch galvanised nail on the market is going for $359, the same item at ARC Manufacturing costs $290 per pound.

With this in mind, Brooks said the company is simply asking for some order in the market. He said right now it appears to be a free for all.

“The Government needs to have more bilateral agreements with the partnering countries. When you look at other countries they have their individual bilateral agreements with different states outside of the Caricom arrangement, we need to have our own agreements,” he stated.

He emphasised that ARC is creating jobs for Jamaicans and that should be factored into the decisions which are made in the industry.

“As manufacturers we contribute to the employment of Jamaicans and we believe that the Jamaican Government should try its very best. We have to do far more protecting manufacturers in Jamaica,” Brooks argued.

Nevertheless, the company is pressing ahead with plans to expand its retail space on Bell Road in St Andrew. Brooks is hopeful the new space will allow ARC to scrape back some of the market share it’s lost to imports.

“Initially we occupied a very small space 5,000 sq ft, we are planning on expanding and modernise the entire area so that our customer base can grow,” he said.

“We’re doing it to ensure that we support all our customer base, our contractors and developers. That store will facilitate their kind of business where we have our sales reps going to the various trade shows, bringing the latest in technology and the latest in creative ideas,” he continued.

He told the Business Observer that the expanded retail space should be completed within a year.

“We’re kinda keeping it very close to our heart because we want to plan a nice grand opening but we are in execution mode and whatever we execute is within a twelve month period. We’re not about this lengthy delay and planning. We plan quickly, accurately, we bring all the stakeholders to the table to ensure that we have flawless and quick execution. So in no time you’ll be able to come and walk the floors of the store,” Brooks stated.

Published by the Jamaica Observer.

Published by the Jamaica Observer.